While the Greek debt deal has eased market tensions of an imminent breakup of the Euro, there are still reasons for worry. There are concerns that the austerity measures will prevent Greece from cutting its debt load. The German manufacturing PMI printed at 50.1 and the services printed at 52.6. The Euro zone manufacturing PMI printed at 49.0 and the services PMI printed at 49.4. Support for the EURUSD is seen at 1.3000 and resistance is seen at 1.3300. The Inside View indicator on HotForex shows that 78% of traders are short on the EURUSD.
The U.K. will release minutes of the previous Bank of England policy meeting. At the last meeting the BOE increased the size of the asset purchase program by 50 billion pounds. Today’s release of the minutes will shed further light in the decision making process as well as chances of further QE in the next few months. If the decision was unanimous, we can expect further QE. If there were dissents, there is less likelihood of further QE in the near future. Support for the GBPUSD is seen at 1.5670 and resistance is seen at 1.5900. The Inside View indicator on HotForex shows that 53% of traders are short on the GBPUSD.
Later today, the U.S. will release U.S. existing home sales data for the month of January. Analysts are expecting sales to have risen to 4.66 million in January from 4.61 million in December. Housing data has generally been positive in the last few months from the U.S. and we expect the trend to continue. We will see new home sales data later this week which is expected to show a slight increase. Support for the USA30 is seen at 12,750 and resistance is seen at 13,000.
The Australian Westpac leading index rose 0.5% in December. The index which is used to predict future growth rose to 283.4. The Westpac index tracks data such as company profits and productivity. Reserve Bank of Australia Glen Stevens is scheduled to speak tomorrow. The RBA surprised world markets earlier this month when it held rates steady at 4.25%. Markets were expecting the RBA to cut rates by 25 basis points. Support for the AUDUSD is seen at 1.0550 and resistance is seen at 1.0800. The Inside View indicator on HotForex shows that 54% of traders are long on the AUDUSD.
New Zealand reported that credit card spending rose 3.1% in January on an annualized basis. This was lower than the 5.9% rise seen in December. The drop in spending from the previous month can be attributed to seasonal changes due to the Christmas holiday shopping season. New Zealand reported earlier that producer prices rose 0.5% in the final quarter of 2011 and inflation is predicted to stay around 2.5%. Support for the NZDUSD is seen at 0.8250 and resistance is seen at 0.8450. The Inside View indicator on HotForex shows that 53% of traders are long on the NZDUSD.